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Blackrock? Look it's way simpler than that. Interest rates aren't going up, and will not be going up appreciably in 2023 or any other year, because we simply ca
by splitstud 5y ago
Blackrock? Look it's way simpler than that. Interest rates aren't going up, and will not be going up appreciably in 2023 or any other year, because we simply can not afford to pay higher interest on the debt.
- sschueller 5y agoWouldn't housing be a safe place to put assets in case negative interest rates are put in place like some countries? In Switzerland you will pay negative interest already on savings of 100k.
- newaccount2021 5y agopossibly but also irrelevant to splitstud's point. if rates on the ten year note even rose to the historical average, we would be paying over 25% of the Federal budget on the national debt interest alone. The interest, not the principal
- imtringued 5y agoI'm sorry but the problem is the exact opposite... Governments must increase their deficits so that the private sector can save more. A lot of countries just export the responsibility to take on debt to other countries. Germany refuses to take on debt and expects the rest of the Eurozone and the US to go into debt so it can pretend to be financially responsible. As long as the private sector has a preference to increase its net savings, interest rates will be at 0%. If it suddenly decides to spend all that money (to call this a good thing is an understatement) the resulting inflation would make the raise in interest rates irrelevant.
- errantmind 5y agoThere seems to be a built in assumption here that people / companies / countries are wrong for not spending money. I haven't seen sufficient historical evidence this is absolutely necessary for a healthy economy. Also, I'm not sure how Germany is forcing anything on anyone here. Care to explain?